The EU should investigate why Irish shoppers pay more for many branded goods than their continental counterparts, according to State agency Forfás.

Irish people pay about 20 per cent more than the euro-zone average for a wide range of consumer products. In a review of the Single European Market published yesterday, Forfás calls for a formal and ongoing investigation into price differences across the EU, and for Irish consumers to get regular cross-border price comparisons.

The report says that Irish consumers have benefited from the market, and are generally positive towards it, but adds that further reforms are needed to maximise its potential.

These include an action plan to boost consumers' use of e-commerce, and a campaign to raise people's awareness of the Solvit redress system that can be used should they have any complaints regarding goods purchased in other EU states.

From the point of view of businesses, the Forfás report says that there should be a centralised clearing system for VAT payments, while the tax should be applied where the goods and services are bought rather than supplied.

The EU should also encourage the introduction of cross-border insurance.

Speaking at the report's launch yesterday, Minister for Enterprise, Trade and Employment Micheál Martin said that, since it opened in 1993, the single market has been an important factor in the State's economic transformation.

He said most of the structures needed to make it work were already in place, and maximising its benefit required taking steps at a "micro" level. "We need to get it on the ground and ensure that it is relevant to all citizens."

Key recommendations

Business:Online VAT registration and central EU refund system;

Streamlined credit terms and procedures;

Encourage cross-border insurance;

Work to improve bilateral trade relationships.

Consumers:Investigate price differences and give access to cross-border price comparisons;

Launch information and awareness campaigns.